Olive oil is gaining traction among Indian consumers, thanks to growing awareness about its health benefits. Olive oil is believed to be beneficial to the heart, and is extensively used in Mediterranean countries for cooking purposes. India, with a quickly expanding middle class population, is emerging as a lucrative market, with Tier I and Tier II cities accounting for the bulk of the demand.
Olive oils contain mono-unsaturated fatty acids (MUFA), which are beneficial not only for cardiovascular health but to general well-being. Olive oil is also rich in polyphenols and Vitamin E, further boosting its health benefits.
What’s Driving the Indian Olive Oil Market
Rising disposable income is another key factor fuelling the India olive oil market. Although awareness is an important step in the adoption of any product, price constraints often force consumers to opt for less-beneficial, but affordable products. However, as income levels have increased, especially among consumers working in multinational companies in Tier I cities, price has diminished as a factor. This is perhaps the reason that explains low adoption of olive oil outside of Tier I and Tier II cities.
The Indian restaurant industry has been growing at a robust pace, fuelled by ‘eating out’ culture. Also, a large section of workforce in urban areas is dependent on restaurants for their daily meals, which has led to mushrooming of restaurants and food delivery services. Western cuisine, especially Mediterranean food, is finding favour among Indians, prompting restaurants to incorporate olive oil in their offerings. This has further lead to increased demand for olive oil in India.
India relies on Mediterranean countries to meet its burgeoning demand for olive oils. Spain, Italy, Turkey, and Greece are the key countries that export olive oil to India. As demand for olive oil is growing at a whopping pace, Indian players have also stepped in to cash in on the lucrative market. Earlier this year, an Indo-Israel collaboration to start production of olive oil in India bore fruit, giving birth of “Raj Olive Oil.”
State of the Indian Olive Oil Market
Although the domestic olive oil market in India is at a nascent stage, government support for India-made olive oils is expected to augur well for its prospects. In September this year, the Indian government increased the import duty on crude edible oil from 7.5% to 12.5%; import duty on refined edible oil was increased by 5%.
The key players in the India olive market include Borges India, Figaro, Unilever Group (Bertolli), Dalmia Continental, Farrell, Del Monte, and Cargill India (brand name ‘Leonardo”). Among these Borges India’s share is the highest at the moment, but it’s expected that other existing players and new entrants will intensify competition by widening their distribution channels.
The key regions where demand for olive oil is strongest include Mumbai, Bangalore, Delhi NCR, Bangalore, and Hyderabad. Other key markets are Pune, Chennai, Ahmedabad, Nagpur, and Surat.
The information presented in this article is sourced from the report, “Olive Oil Market: India Industry Analysis and Opportunity Assessment 2014-2020”. You can request a sample of the report and table of contents (TOC) at http://www.futuremarketinsights.com/reports/sample/rep-in-208
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Mr. Sudip Saha